The short though somewhat vexing question that arises for determination in this second appeal filed by the Union of India relates to the interpretation of Section 8 of the Indian Contract Act. Another consequential question that falls for decision is whether the provisions of that section apply to the facts of this case. The two courts below have concurrently held that Section 8 is not attracted to the facts of the case.

2. The plaintiffs-respondents M/s Rameshwarlall Bhagchand had imported 210 bags of ground-nuts in 1963 by railway from Risia to Gauhati and when they took delivery of the consignment on 26-7-1963 at the latter station, the consignment was found to be so damaged as not to be fit for human consumption. A certificate to that effect was issued on 26-8-1963 by the Railway officer concerned to the consignees. The dispute about compensation having not been immediately settled, the consignees served a notice on the Railway Administration claiming compensation in the sum of Rs. 2368.25. The General Manager, N. F. Railway, Pandu, sent on 5-5-1964 a cheque in the amount of Rs. 1173.19 to the consignees along with a letter stating that the cheque was being sent in ful